In Historic First, Greek Debt Carries Negative Interest Rate (Greeks PAID To Borrow!) Greece Sells E487.5M 91-Day Bills At -0.02%

Remember when Greek debt was a joke? Not anymore! Greece just held a T-bill auction and sold E487.5 million in 91-day bills at … drumroll … -0.02%.

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Athens, Greece (AP) — More than a year after Greece exited its bailout programs, investors — in a historic first — have bought its short-term debt at a loss.

The country’s debt management agency said Wednesday it raised 487.5 million euros ($535 million) selling 13-week treasury bills, for which the yield was -0.02%.

That means investors will get back slightly less than they paid, following a trend in other European countries.

Greece’s last 13-week treasury bill sale, in August, carried a yield of 0.095%.
At the start of its financial crisis, in 2010, Greece was locked out of bond markets as investors feared they wouldn’t get their money back. Bondholders were in fact later forced to accept large losses on their investments.

From then till August 2018 Greece survived on international bailouts.

But it is a cautionary tale: A Beware of Greeks Central Banks like the ECB bearing gifts.

At least Greece’s GDP is growing at 1.9% YoY.

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The ECB president, Mario Draghi. deserves all the plaudits for saving the euro, but the “doom loop” between large banks and sovereign debt hasn’t gone away.

You know we are in monetary Bizarro world when “investors” loan money to Greece with a debt to GDP ratio of 181.80%.

The last known photo of outgoing ECB President Mario Draghi.

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